OpenAI considers ads on ChatGPT

• Published On: 02 December 2024 at 20:20

The Financial Times reports that OpenAI is looking into the prospect of introducing adverts into its economic model.

CFO Sarah Friar stated that the company is exploring incorporating advertisements, but emphasised that any such move would be taken slowly, with ads incorporated strategically and carefully in terms of timing and location.

However, she stressed in a follow-up remark that OpenAI had "no active plans" to seek advertising at the moment. Despite this, the proposal looks to be being seriously considered, especially given the recent hire of Shivakumar Venkataraman, a former Google executive with substantial advertising experience.

So far, OpenAI has primarily used subscription methods to support the development of its generative AI tools.

However, the high expenses of developing and operating these advanced AI models have prompted concerns about the long-term viability of relying entirely on subscription payments.

As OpenAI expands its activities, the need for other revenue streams becomes more critical, especially as investors may lose tolerance with rising expenditures in the absence of alternative funding sources.

Despite these financial constraints, OpenAI creator Sam Altman has expressed dissatisfaction with the idea of including advertisements on the site.

In a recent lecture at Harvard Business School, Altman was asked if OpenAI might use advertising to increase access. He said that, while it may be a "last resort," he finds the mix of advertisements and AI "uniquely unsettling." He went on: "I'm not saying OpenAI would never consider ads, but I don't like them in general."